interim report q3 2019 - goodvalley · q3 2019 • group revenue grew to dkk 414 million (q3 2018:...

Interim report Q3 2019

Highlights

Page 1G O O D V A L L E Y • Q 3 2 0 1 9 I N T E R I M R E P O R T

Goodvalley continued to increase production and grow sales of live pigs in Q3 2019 to accommodate increasing demand across the Group’s markets. Higher prices for live pigs boosted earnings from the Group’s pig production. At the same time, though, the crop yield came in at a record-low level and the higher pig prices had a temporary negative impact on profitability on value added pork products. The Group’s operational performance improved slightly in the quarter driven by continued efforts to improve production planning and processes.

“Our pig production generated strong results in the quarter as we lev-eraged our recent investments in production capacity, enabling us to sell more live pigs at a higher average price while simultaneously improving operational efficiency slightly. Even though we realised a record-low crop yield from our land in Ukraine in particular and saw the pig price effect partly offset by relatively fixed pork product sales prices, we now expect to reach the high end of our revenue and earnings outlook for the full-year.

” says CEO Hans Henrik Pedersen.

Contact information Hans Henrik Pedersen, CEO Tel.: +45 7652 2000 Conference callA conference call for investors, analysts and other stake-holders will be conducted in English by CEO Hans Henrik Pedersen and Vice CEO Kristian Brokop on 27 November 2019 at 10 AM (CET). The conference call can be followed live via this link, and participants may dial telephone num-bers provided at our corporate website to ask questions.

Q 3 2 0 1 9• Group revenue grew to DKK 414 million (Q3 2018: DKK 377

million) driven by an increase in sales of live pigs at a higher average price, which boosted Adjusted EBITDA* to DKK 71 million (Q3 2018: DKK 35 million) corresponding to an Adjusted EBITDA margin of 17.2 % (Q3 2018: 9.2%).

• The Polish segment grew revenue to DKK 228 million (Q3 2018: DKK 221 million) and lifted Adjusted EBITDA to DKK 34 million (Q3 2018: DKK 4 million) due to higher live pig sales volume and price. The positive development was partly offset by relatively fixed domestic pork product prices despite fewer pigs slaughtered in the quarter.

• Revenue in the Ukrainian business increased to DKK 138 million (Q3 2018: DKK 108 million) driven by higher pig prices, whereas Adjusted EBITDA declined to DKK 15 million (Q3 2018: DKK 17 million) as the crop yield came in at a record-low level below the low yield realised in the comparison period.

• In Russia, revenue was stable at DKK 48 million (Q3 2018: DKK 48 million), while Adjusted EBITDA declined to DKK 18 million (Q3 2018: DKK 22 million) due to lower pig prices.

O U T L O O K :Based on the positive development in Q3 2019, Goodvalley ex-pects to reach the high end of the previously communicated outlook for 2019 in terms of revenue and Adjusted EBITDA. The Group now expects to generate revenue of DKK 1,450-1,550 against the previous expectation of DKK 1,400-1,550 million and an Adjusted EBITDA of DKK 250-280 million against the former expectation of DKK 220-280 million.

9 M 2 0 1 9• Group revenue was DKK 1,121 million (9M 2018: DKK 1,102 mil-

lion), and Adjusted EBITDA amounted to DKK 185 million (9M 2018: DKK 190 million), corresponding to an Adjusted EBITDA margin of 16.5% (9M 2018: 17.3%).

• In Poland, revenue came to DKK 680 million (DKK 687 mil-lion) with Adjusted EBITDA of DKK 63 million (9M 2018: DKK 58 million).

• The business in Ukraine generated revenue of DKK 310 million (9M 2018: DKK 291 million) and Adjusted EBITDA of DKK 68 million (9M 2018: DKK 95 million).

• Russian revenue was DKK 131 million (9M 2018: DKK 125 mil-lion) with Adjusted EBITDA of DKK 42 million (9M 2018: DKK 52 million).

*In this report, Adjusted EBITDA refers to EBITDA adjusted for herd price changes and non-recurring items, cf. page 3.

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G O O D V A L L E Y • Q 3 2 0 1 9 I N T E R I M R E P O R T

Financial highlightsDKK million Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

Income statement

Revenue 414 377 1,121 1,102

Total income 338 322 1,235 1,178

Gross profit 90 72 315 298

EBITDA 63 40 240 210

Adjusted EBITDA 71 35 185 190

EBIT 26 12 132 122

Financial items, net 1 (33) (9) (51)

Profit / (loss) for the period 26 (21) 120 67

Adjusted* profit 18 (6) 26 57

Cash flow

Operating activity 44 58 131 146

Investing activity (16) (91) (52) (214)

Free cash flow 28 (33) 78 (68)

Financing activity (34) (4) (68) 9

Balance sheet

Non-current assets 2,057 1,907 2,057 1,907

Net working capital 636 600 636 600

Invested capital 2,694 2,507 2,694 2,507

Total assets 2,866 2,798 2,866 2,798

Equity 1,468 1,274 1,468 1,274

Net interest-bearing debt 1,158 1,178 1,158 1,178

DKK million Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

Financial ratios

Gross margin 21.6% 19.2% 28.1% 27.0%

EBITDA margin 15.1% 10.5% 21.4% 19.0%

Adjusted EBITDA margin 17.2% 9.2% 16.5% 17.3%

EBIT margin 6.2% 3.0% 11.8% 11.1%

Free cash flow / Revenue 6.9% (8.6%) 7.2% (6.2%)

Cash conversion 63.4% 167.9% 72.3% 76.7%

Capex (19) (111) (60) (220)

NIBD/Adjusted EBITDA LTM 5.4 4.1 5.4 4.1

Equity ratio 51.2% 45.5% 51.2% 45.5%

ROIC 2.5% 6.4% 2.5% 6.4%

FTE end of period 2,260 2,306 2,260 2,306

Share ratios

Earnings per share, DKK 0.5 (0.4) 2.2 1.2

Goodvalley Bond Obligor Group*

Revenue 367 328 991 977

Total income 300 277 1,105 1,043

EBITDA 50 14 202 148

Adjusted EBITDA 53 13 143 138

Interest bearing debt 1,190 1,221 1,190 1,221

Net interest bearing debt 1,132 1,171 1,132 1,171

Adjusted EBITDA LTM 159 223 159 223

NIBD/Adjusted EBITDA LTM 7.1 5.2 7.1 5.2

* Bond Obligor Group consists of: Goodvalley A/S, Finansax ApS, Goodvalley Agro SA, Goodvalley Sp. Z o.o. and Goodvalley Ukraine LLC.

*In this report, Adjusted profit refers to profit for the period adjusted for non-recurring items, herd price changes and exchange rate adjustments in financial items.


Financial performanceB U S I N E S S D E V E L O P M E N TGoodvalley continued to see increasing demand for live pigs in all markets as African Swine Fever (ASF) continued to spread in Asia resulting in higher demand and prices across European markets in Q3 2019. The Group reduced the number of pigs slaughtered and thus pork volumes sold from the slaughterhouse in Poland as elevated input prices and relatively fixed sales prices for value added pork products eroded profitability.

The Group’s operational performance was stable with a feed conversion ratio of 2.72 (Q3 2018: 2.73) and a slight increase in the number of pigs sold per sow to a level of 31.3 (Q3 2018: 31.2). The positive developments were driven by continued efforts to improve production planning and processes while ensuring knowledge sharing across all segments. Goodvalley's pig production volumes were furthermore positively affected by the expanded production capacity, which was installed last year and has been taken into use in recent quarters. The Group intensified the efforts to mit-igate risks related to ASF across all markets during the quarter.

I N C O M E S TAT E M E N TRevenueConsolidated revenue increased to DKK 414 million (Q3 2018: DKK 377 million) in Q3 2019 as Goodvalley grew live pig sales in all markets, supported by favourable prices following ASF outbreaks in several Asian countries, entailing a decline in supply. On that background, the average sales price increased to DKK 12.78 per kilo (Q3 2018: DKK 11.24 per kilo). The positive development in live pig sales was partly offset by a detrimental impact on profitabil-ity from pork sales in Poland due to a time lag in tranferring the higher pig prices. The Group consequently reduced the number of pigs slaughtered to limit this effect as much as possible. Sales of live pigs accounted for 55% of Group revenue, while 37% came from sales of pork products.

Total income increased to DKK 338 million (Q3 2018: DKK 322 mil-lion) in Q3 2019 following fair value adjustments of DKK -85 million (Q3 2018: DKK -60 million) caused mainly by an unexpectedly low crop yield in Ukraine.

In 9M 2019, revenue came to DKK 1,121 million (9M 2018: DKK 1,102 million), and total income was DKK 1,235 million (9M 2018: DKK 1,178 million).

Cost of goods soldCost of goods sold was stable at DKK 248 million (Q3 2018: DKK 250 million) in Q3 2019. Costs declined as Goodvalley reduced the number of pigs slaughtered, but this development was offset by higher costs related to increased feed consumption due to higher volumes produced and elevated costs primarily related to developing the land added to the Group’s arable activities in 2018 in Ukraine.

Cost of goods sold was DKK 920 million (9M 2018: DKK 880 million) in 9M 2019.

DKK million Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

Revenue 414 377 1,121 1,102

Change in fair value (85) (60) 93 62

Grants and other income 9 5 21 14

T O T A L I N C O M E

338 322 1,235 1,178

DKK million Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

EBITDA 63 40 240 210

Herd price adjustment 8 (5) (55) (19)

A D J U S T E D E B I T D A 71 35 185 190

A D J U S T E D E B I T D A M A R G I N

17.2% 9.2% 16.5% 17.3%

EBITDA margin 15.1% 10.5% 21.4% 19.0%

REVENUE, DKK MILLION, AND ADJUSTED EBITDA MARGIN, %

G R O U P

PIG PRICE, DKK / KG., AND MEAT TO FEED RATIO

0

3

6

9

12

15

11.24

6.62 6.485.78

7.12 7.44

10.809.96

12.29

4

6

8

10

1212.78

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

0

100

200

300

400 377

9.2% 8.0%

11.5%

20.0%17.2%

371322

385414

10

15

20

25

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018


Financial performanceSG&AGoodvalley’s sales, general and administrative expenses came to DKK 27 million (Q3 2018: DKK 32 million) in Q3 2019 from a relatively high level in the comparison period, which was marked by expenses related to the strengthening of the Group’s organisation and brand. SG&A expenses include Group costs not directly attributable to individual segments, cf. note 2 to the financial statements.

In 9M 2019, the Group’s SG&A came to DKK 75 million (9M 2018: DKK 88 million).

EBITDAThe Group’s Adjusted EBITDA increased to DKK 71 million (Q3 2018: DKK 35 million) in Q3 2019, corresponding to an Adjusted EBITDA margin of 17.2% (Q3 2018: 9.2%). EBITDA increased to DKK 63 million (Q3 2018: DKK 40 million), corresponding to an EBITDA margin of 15.1% (Q3 2018: 10.5%).

In 9M 2019, Goodvalley’s Adjusted EBITDA amounted to DKK 185 million (9M 2018: DKK 190 million), corresponding to an Adjusted EBITDA margin of 16.5% (9M 2018: 17.3%). The Group reported

EBITDA of DKK 240 million (9M 2018: DKK 210 million) and an EBITDA margin of 21.4% (9M 2018: 19.0%) in 9M 2019.

Implementation of IFRS 16 “Leases” as of 1 January 2019 im-proved Adjusted EBITDA by DKK 3 million in Q3 2019 and DKK 10 million in 9M 2019, while depreciation and interest expenses have increased correspondingly. Please refer to note 1 in the financial statements.

EBITEBIT increased to DKK 26 million (Q3 2018: DKK 12 million) in Q3 2019, corresponding to an EBIT margin of 6.2% (Q3 2018: 3.0%).

In 9M 2019, the Group’s EBIT came to DKK 132 million (9M 2018: DKK 122 million), corresponding to an EBIT margin of 11.8% (9M 2018: 11.1%).

Adjusted profitIn Q3 2019, the Group’s Adjusted profit* increased to DKK 18 million (Q3 2018: DKK -6 million), corresponding to an Adjusted profit margin of 4.3% (Q3 2018: -1.6%).

Adjusted profit for 9M 2019 came to DKK 26 million (9M 2018: DKK 57 million), corresponding to an Adjusted profit margin of 2.3% (9M 2018: 5.2%).

Total comprehensive incomeThe Group’s total comprehensive income amounted to DKK 69 million (Q3 2018: DKK -44 million) in Q3 2019 including positive exchange adjustments of foreign enterprises of DKK 42 million (Q3 2018: DKK -23 million).

For 9M 2019, total comprehensive income was DKK 238 million (9M 2018: DKK 9 million).

B A L A N C E S H E E TThe balance sheet amounted to a total of DKK 2,866 million (9M 2018: DKK 2,798 million) at 30 September 2019.

Net working capital was DKK 636 million (9M 2018: DKK 600 million) at 30 September 2019 including 116 thousand tonnes of grain and other feed components in stock (9M 2018: 145 thousand tonnes).

DKK million Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

Net profit 26 (21) 120 67

Herd price adjustment 8 (5) (55) (19)

Exchange rate adjustment (17) 20 (39) 9

Adjusted profit 18 (6) 26 57

A D J U S T E D P R O F I T M A R G I N 4.3% (1.6%) 2.3% 5.2%

Net Profit margin 6.4% (5.6%) 10.7% 6.1%

*In this report, Adjusted profit refers to profit for the period adjusted for non-recurring items, price changes of herd on stock and exchange rate adjustments in financial items.

G R O U P

OPERATING CASH FLOW, DKK MILLION

0

20

40

60

80

100

58 56

26

61

44

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018


Goodvalley’s invested capital increased to DKK 2,694 million (9M 2018: DKK 2,507 million) at 30 September 2019. Return on invested capital (ROIC) decreased to 2.5% (9M 2018: 6.4%) as the invested capital were impacted by upward currency ad-justments.

Total equity increased to DKK 1,468 million (9M 2018: DKK 1,274 million) at 30 September 2019, corresponding to an equi-ty ratio of 51.2% (9M 2018: 45.5%).

Goodvalley’s net interest-bearing debt decreased to DKK 1,158 million (9M 2018: DKK 1,178 million) at 30 September 2019 as the Group reduced its short and long-term liabilities following the positive financial developments. The net interest-bearing debt was impacted by a DKK 52 million effect of IFRS 16 “Leas-es” implementation, cf. note 1 to the financial statements. NIBD/Adjusted EBITDA LTM increased to 5.4 (9M 2018: 4.1).

Financial performanceG R O U P

ROIC, % PIGS SOLD, THOUSAND TONNES (LIVE WEIGHT)

POLAND UKRAINE RUSSIA

0

2

4

6

8

10

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

6.4

4.0

2.11.6

2.5

0

7

14

21

28

35

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

13.5 14.9 14.814.0 14.3

9.4 10.38.1 9.5 10.9

27.430.3

26.328.8 30.5

4.55.1

4.15.1

4.8


Financial performanceGoodvalley’s sales of pork products in Poland were impacted by challenging market conditions characterised by high input costs that could not be absorbed in the sales prices for value added pork products. The reduction in the number of pigs slaughtered resulted in a significant decline in pork sales to 8.5 thousand tonnes (Q3 2018: 12.0 thousand tonnes) in Q3 2019. Sales of Goodvalley’s branded products continued to improve in Q3 2019 supported by a nationwide TV campaign and online marketing. Overall, deboned meat accounted for 29% (Q3 2018: 40%) of pork sales, while the share of value-added products in-cluding branded products was 71% (Q3 2018: 60%) in the quarter.

Moderately higher sales of live pigs of 14.8 thousand tonnes (Q3 2018: 13.5 thousand tonnes) at a higher average pig price of DKK 12.60 per kilo (Q3 2018: DKK 10.35 per kilo) outweighed the negative impact of lower incremental margin on pork products in the quarter.

Revenue in the Polish business grew to DKK 228 million (Q3

2018: DKK 221 million) driven by higher prices for live pigs and increasing live pig volumes. The Polish business accounted for 56% of Group revenue, and segment revenue was comprised of 66% from pork products, 28% from external sales of live pigs and 6% from external sales of crops and energy.

Total income came to DKK 218 million (Q3 2018: DKK 202 mil-lion) in Q3 2019 and includes fair value adjustments of DKK -16 million (Q3 2018: DKK -24 million).

Adjusted EBITDA increased to DKK 34 million (Q3 2018: DKK 4 million), resulting in a strong improvement of the Adjusted EBITDA margin to 15.0% (Q3 2018: 1.8%) as a result of the higher pig prices and improved efficiency. During the quarter, pigs sold per sow increased to a level of 30.1 (Q3 2018: 29.7) and the feed conversion ratio improved to a level of 2.70 (Q3 2018: 2.85) driven by operational improvements and streamlining of production planning and processes while the feed price stabilised at a high level of DKK 1.81 per kilo (Q3 2018: DKK 1.83 per kilo). EBITDA

DKK million Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

R E V E N U E 228 221 680 687


Other income 6 5 18 13

T O TA L I N C O M E 218 202 784 727

E B I T D A 33 - 121 63

A D J U S T E D E B I T D A 34 4 63 58


SALE OF PORK (SLAUGHTERED), THOUSAND TONNES

PIG PRICE, DKK/ KG., AND MEAT TO FEED RATIO

PIGS SOLD PER SOW, HEADS

P O L A N D

5

7

9

11

13

15

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

12.0

13.3

11.510.5

8.5

0

3

6

9

4

6

8

12 10

1215

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

10.35

5.66 5.745.03

6.796.99

9.999.07

12.37 12.60

25

27

29

31

33

35

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

29.7 29.7

32.2

30.0 30.1

All of Goodvalley branded products have three common attributes:

CLIMATE- FRIENDLY

NON GMO FEED

RWA

PARÓWKIGoodvalley Hot Dogs is one of our popular products which is sold in retail stores across Poland. The Hot Dogs have a 100% meat content and are completely free from any pre-servatives.


Financial performanceGoodvalley Hot Dogsincreased to DKK 33 million (Q3 2018: DKK 0 million) in Q3 2019.

In 9M 2019, pork volume declined to 22.0 thousand tonnes (9M 2018: 26.0 thousand tonnes) while sales of live pigs increased to 43.1 thousand tonnes (9M 2018: 41.8 thousand tonnes). Revenue came to DKK 680 million (9M 2018: DKK 687 million), accounting for 60% of Group revenue, with Adjusted EBITDA amounting to DKK 63 million (9M 2018: DKK 58 million) and EBITDA standing at DKK 121 million (9M 2018: DKK 63 million).

FEED CONVERSION RATIO, KG., (WHOLE HERD)

P O L A N D

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

2.85 2.82 2.81 2.78 2.70


Financial performanceIn Q3 2019, the Ukrainian business grew its sales of live pigs to 10.9 thousand tonnes (Q3 2018: 9.4 thousand tonnes) at a higher average price of DKK 13.28 per kilo (Q3 2018: DKK 11.73 per kilo). The segment’s revenue increased to DKK 138 million (Q3 2018: DKK 108 million) comprised of 85% from external sales of live pigs and 15% from external sales of crops and energy, accounting in total for 33% of Group revenue in Q3 2019.

The segment’s total income increased to DKK 82 million (Q3 2018: DKK 75 million) in Q3 2019. Fair value adjustments were DKK -59 million (Q3 2018: DKK -33 million) as the effect of higher pig prices and volumes could not absorb the impact of significantly lower arable yields following heavy rain in the beginning of the year.

Adjusted EBITDA declined to DKK 15 million (Q3 2018: DKK 17 million) in Q3 2019, corresponding to an Adjusted EBITDA mar-gin of 10.7% (Q3 2018: 15.7%). EBITDA came to DKK 14 million (Q3 2018: DKK 22 million). Production efficiency was slightly lower

in Q3 2019 as pigs sold per sow declined to 32.8 (Q3 2018: 33.2). The feed conversion ratio increased to a level of 2.73 (Q3 2018: 2.58) as more finishers were produced following expansion of finisher capacity entailing an increase in the feed conversion ratio compared to weaners. The feed price stabilised at DKK 1.62 per kilo (Q3 2018: DKK 1.63 per kilo).

In 9M 2019, the Ukrainian segment’s live pig sales came to 28.5 thousand tonnes (9M 2018: 28.2 thousand tonnes), resulting in revenue of DKK 310 million (9M 2018: DKK 291 million), account-ing for 28% of Group revenue. Adjusted EBITDA came to DKK 68 million (9M 2018: DKK 95 million), and EBITDA was DKK 69 million (9M 2018: DKK 100 million) in 9M 2019.



PIG PRICE, DKK/ KG., AND MEAT TO FEED RATIO

U K R A I N E

DKK million Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

R E V E N U E 138 108 310 291


Other income 3 - 2 1

T O TA L I N C O M E 82 75 320 316

E B I T D A 14 22 69 100

A D J U S T E D E B I T D A 15 17 68 95


0

3

6

9

12

15

4

6

8

10

12

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

11.73

7.18 7.236.33

7.488.21

11.0810.33

12.1313.28

25

27

29

31

33

35

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

33.2 32.933.9 34.1

32.8

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

2.582.72 2.68 2.66 2.73



PIG PRICE, DKK/ KG AND MEAT TO FEED RATIO


Financial performanceR U S S I A

Goodvalley Russia grew its sales of live pigs in Q3 2019 to 4.8 thousand tonnes (Q3 2018: 4.5 thousand tonnes) while the av-erage price for live pigs declined to DKK 12.15 per kilo (Q3 2018: DKK 13.56 per kilo) from a high comparison level as production capacity in the market increased. Revenue came to DKK 48 million (Q3 2018: DKK 48 million), and the Russian business accounted in total for 11% of Group revenue in the quarter.

In Q3 2019, total income for the Russian activities decreased to DKK 38 million (Q3 2018: DKK 45 million).

Adjusted EBITDA declined to DKK 18 million (Q3 2018: DKK 22 million), corresponding to an Adjusted EBITDA margin of 37.9% (Q3 2018: 45.0%) in Q3 2019 driven by higher feed prices in the quarter at DKK 1.64 per kilo (Q3 2018: DKK 1.43 per kilo) resulting in a steep drop in the meat to feed ratio. Pig production efficien-cy was higher as the number of pigs sold per sow increased to 32.5 (Q3 2018: 32.0) as a result of the Group’s continued work to

promote cross-border knowledge sharing and management education programmes. EBITDA declined to DKK 13 million (Q3 2018: DKK 26 million) in Q3 2019.

In 9M 2019, the Russian segment grew its live pig sales volume to 14.0 thousand tonnes (9M 2018: 13.1 thousand tonnes) and rev-enue to DKK 131 million (9M 2018: DKK 125 million), accounting for 12% of Group revenue. Adjusted EBITDA was DKK 42 million (9M 2018: DKK 52 million), and EBITDA came to DKK 38 million (9M 2018: DKK 62 million) in 9M 2019.

DKK million Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

R E V E N U E 48 48 131 125

Change in fair value (10) (3) (1) 10

Other income - - 1 -

T O TA L I N C O M E 38 45 131 135

E B I T D A 13 26 38 62

A D J U S T E D E B I T D A 18 22 42 52


0

3

6

9

12

15

4

6

8

10

12

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

13.56

9.509.09

6.857.55 7.41

12.4111.19

12.40 12.15

25

27

29

31

33

35

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

32.0

33.133.6

32.5 32.5

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018

2.69 2.67 2.68 2.65 2.73


OutlookGoodvalley expects to reach the high end of the previously com-municated outlook for 2019 in terms of revenue and Adjusted EBITDA based on year-to-date performance and expectations of higher market prices for live pigs. The expected price increases are seen to boost results from the Group's pig production units, while simultaneously reducing earnings from the production of value added food products due to elevated input prices and relatively fixed sales prices for pork products in Poland. The outlook for 2019 is furthermore impacted by expectations of higher feed costs compared to the 2018 level. Group revenue is now expected to amount to DKK 1,450-1,550 million against the previous expectation of DKK 1,400-1,550, and Adjusted EBITDA is expected to reach DKK 250-280 million against the former expectation of DKK 220-280 million.

AssumptionsFollowing Q3 2019, Goodvalley now bases the outlook for the full-year on an average market price for live pigs of DKK 12.1 per

kilo (previously DKK 12.0 per kilo) slaughter pig and a feed price of DKK 1.70 per kilo (previously DKK 1.72 per kilo) at Group level.

Current fluctuations in live pig prices in Goodvalley’s markets continue to be driven mainly by changes in supply and demand in the Chinese market following ASF outbreaks, entailing con-tinued low transparency. The outlook is furthermore based on current exchange rates for the Group’s key currencies as well as the prevailing economic situation in Goodvalley’s markets.

The outlook represents our current expectations for the de-velopment in the Group’s revenue and Adjusted EBITDA, and Goodvalley’s EBITDA may thus deviate significantly from this outlook.

This report contains forward-looking statements reflecting Goodvalley’s current forecasts of future events, operational performance and financial results. Such statements are subject to uncertainty as factors within and beyond Goodvalley’s control may cause actual performance and results to differ materially from the forecasts in this report. Such factors include, among other things, the fair value of pigs, global and local market prices of pork meat, changes in consumer preferences and demand, consumer purchasing power, competition, any outbreak of animal diseases or epidemics, the supply of utilities, developments in financial markets and changes or amendments to legislation, regu-lation or the political situation in Goodvalley’s markets. See also the section on risk management and note 4.2 to the annual financial statements for 2018.

D K K M I L L I O N 2 0 1 9 O U T L O O K A N N U A L R E P O R T 2 0 1 8

2 0 1 9 O U T L O O K 2 7 N O V E M B E R 2 0 1 9

R E V E N U E 1,400-1,550 1,450-1,550

A D J U S T E D E B I T D A 220-280 250-280

F I N A N C I A L C A L E N D A R 2 0 2 0 2 7 F E B R U A R Y: A N N U A L R E P O R T 2 0 1 9 2 3 A P R I L : A N N U A L G E N E R A L M E E T I N G 2 8 M AY: I N T E R I M R E P O R T Q 1 2 0 2 0 2 1 A U G U S T : I N T E R I M R E P O R T Q 2 2 0 2 0 2 6 N O V E M B E R : I N T E R I M R E P O R T Q 3 2 0 2 0


Management statementThe Board of Directors and Executive Board have today reviewed and approved the Interim Report of Goodvalley A/S and subsidiaries (“the Group”) for the period 1 January – 30 September 2019. The Interim Report has been prepared in accordance with IAS 34 “Interim Financial Reporting” as adopted by the European Union and additional Danish requirements for listed companies.

Furthermore, the Interim Report has been prepared in accordance with the accounting policies set out in the Group’s Annual Report for 2018, except for the effect of implementation of IFRS 16 with effect from 1 January 2019. The Interim Report has not been audited or reviewed by the Group’s independent auditor.

In our opinion, the accounting policies used are appropriate and the overall presentation of the interim consolidated financial statements give a true and fair view of the Group’s assets, liabil-ities and financial position as at 30 September 2019 and of the results of the Group’s operations and cash flows for the period 1 January - 30 September 2019.

We further consider that the Management Commentary (on page 1 – 10) includes a true and fair description of the development and performance of the Group, the results for the period and the financial position, as well as a description of the principal risks and uncertainties that the Group faces in accordance with Danish requirements for listed companies.

Apart from the information set out in the Interim Report, there have been no changes to the Group’s significant risks and uncertainties that have not been disclosed in the Annual Report 2018.

Copenhagen, 27 November 2019

Executive Board

Hans Henrik Pedersen Kristian Brokop JakobsenChief Executive Officer Vice Chief Executive Officer

Board of Directors

Anders Christen Obel Niels Rauff Hansen Anders BundgaardChairman Vice Chairman

Erling Bech Poulsen Leif Bergvall Hansen Helle Okholm


ConsolidatedFinancial Statements


Consolidated statement of comprehensive income

C O N S O L I D AT E D I N C O M E S TAT E M E N TD K K M I L L I O N Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

Revenue 414 377 1,121 1,102

Change in fair value of biological Assets (85) (60) 93 62

Grants and other income 9 5 21 14

T O TA L I N C O M E 338 322 1,235 1,178

Cost of goods sold (COGS) (248) (250) (920) (880)

G R O S S P R O F I T 90 72 315 298

SG&A (27) (32) (75) (88)

E B I T D A 63 40 240 210

Depreciation and amortisation (37) (28) (108) (88)

P R O F I T B E F O R E F I N A N C I A L E X P E N S E S A N D TA X

26 12 132 122

Financial income 1 2 3 5

Financial expenses (17) (15) (51) (47)

Exchange rate adjustments 17 (20) 39 (9)

P R O F I T / ( L O S S ) B E F O R E TA X 27 (21) 123 71

Income tax (1) - (3) -

P R O F I T / ( L O S S ) O F C O N T I N U I N G O P E R AT I O N S

26 (21) 120 71

Profit /(loss) for the year of discontinued operations

- - - (4)

P R O F I T / ( L O S S ) F O R T H E P E R I O D 26 (21) 120 67

Profit /(loss) is attributable to:

Owners 26 (21) 120 67

T O TA L 26 (21) 120 67

C O N S O L I D AT E D S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E D K K M I L L I O N Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

Profit/(loss) for the period 26 (21) 120 67

Items that may be reclassi f ied subsequently to profit or loss

Exchange adjustments of foreign enterprises 42 (23) 118 (58)

T O TA L C O M P R E H E N S I V E I N C O M E 69 (44) 238 9

Comprehensive income is attributable to:

Owners 69 (44) 238 9

TOTAL 69 (44) 238 9


Consolidated balance sheet

A S S E T SD K K M I L L I O N 9 M 2 0 1 9 9 M 2 0 1 8 2 0 1 8

Goodwill 92 86 84

Other intangible assets 26 25 24

I N TA N G I B L E A S S E T S 118 111 108

Land and buildings 1,119 1,004 1,051

Leasehold improvements 111 116 117

Plant and machinery 302 260 276

Other fixtures and fittings, tools and equipment 128 115 120

Property, plant and equipment in progress 90 184 142

Right of use assets 52 - -

P R O P E R T Y , P L A N T A N D E Q U I P M E N T 1,802 1,679 1,706

Non-current asset investment 4 2 4

F I N A N C I A L A S S E T I N V E S T M E N T S 4 2 4

Biological assets - basic herd 133 115 109

B I O L O G I C A L A S S E T S 133 115 109

N O N - C U R R E N T A S S E T S 2,057 1,907 1,927

Biological assets - sales herd 268 221 184

Biological assets - arable, crop production 84 83 66

Inventories 252 263 260

B I O L O G I C A L A S S E T S A N D I N V E N T O R I E S 604 567 510

Trade receivables 58 69 73

Receivables from associates 7 7 7

Other receivables 47 36 35

Prepayments 23 42 15

R E C E I V A B L E S 135 154 130

Cash at bank and in hand 70 101 63

Assets held for sale - 69 -

C U R R E N T A S S E T S 809 891 703

A S S E T S 2,866 2,798 2,630

L I A B I L I T I E S A N D E Q U I T YD K K M I L L I O N 9 M 2 0 1 9 9 M 2 0 1 8 2 0 1 8

Share capital 538 538 538

Reserve for exchange adjustments (431) (549) (549)

Retained earnings 1,361 1,285 1,241

Capital and reserves attributable to owners 1,468 1,274 1,230

T O TA L E Q U I T Y 1,468 1,274 1,230

Bond debt 968 967 970

Provision for deferred tax 4 4 4

Other provisions 8 3 4

Credit institutions 30 42 39

Lease liabilities 52 - -

Subordinated loan from Polen Invest A/S 85 85 70

Deferred income 8 9 8

L O N G -T E R M L I A B I L I T I E S 1,154 1,110 1,095

Credit institutions 81 157 131

Subordinated loan from Polen Invest A/S 7 24 24

Trade payables 85 103 93

Other provisions 1 - 1

Other payables 69 58 53

Deferred income 2 3 3

S H O R T-T E R M L I A B I L I T I E S 244 345 305

Liabilities of disposal group classified as held for sale - 69 -

L I A B I L I T I E S 1,398 1,523 1,400

L I A B I L I T I E S A N D E Q U I T Y 2,866 2,798 2,630


Statement of changes in equity

9 M 2 0 1 9D K K M I L L I O N S H A R E

C A P I TA LR E S E R V E F O R E X C H A N G E

A D J U S T M E N T S R E TA I N E D E A R N I N G S E Q U I T Y O W N E R S T O TA L

E Q U I T Y

E Q U I T Y A T 1 J A N U A R Y 2 0 1 9 538 (549) 1,241 1,230 1,230

Net profit for the period 120 120 120

Other comprehensive income 118 118 118

C O M P R E H E N S I V E I N C O M E F O R T H E P E R I O D 118 120 238 238

E Q U I T Y AT 3 0 S E P T E M B E R 2 0 1 9 538 (431) 1,361 1,468 1,468

9 M 2 0 1 8D K K M I L L I O N S H A R E

C A P I TA LR E S E R V E F O R E X C H A N G E

A D J U S T M E N T S R E TA I N E D E A R N I N G S E Q U I T Y O W N E R S T O TA L

E Q U I T Y

E Q U I T Y A T 1 J A N U A R Y 2 0 1 8 538 (491) 1,218 1,265 1,265

Net profit for the year - 67 67 67

Other comprehensive income/ (loss) - (58) (58) (58)

C O M P R E H E N S I V E I N C O M E F O R T H E Y E A R - (58) 67 9 9

E Q U I T Y AT 3 0 S E P T E M B E R 2 0 1 8 538 (549) 1,285 1,274 1,274


S TAT E M E N T O F C A S H F L O W SD K K M I L L I O N Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

P R O F I T 26 (21) 120 67

Adjustments:

Financial income and expenses 15 13 48 42

Currency (gains)/losses (17) 16 (37) 8

Depreciation and amortisation 37 28 108 88

Tax on the profit for the period 1 - 3

Other adjustments (4) 30 6 51

Change in working capital 2 6 (66) (67)

C A S H F L O W S F R O M O P E R A T I N G A C T I V I T I E S B E F O R E F I N A N C I A L I N C O M E A N D E X P E N S E S

60 72 182 188

Financial income received 1 1 3 5

Financial expenses paid (17) (15) (51) (47)

C A S H F L O W S F R O M O R D I N A R Y A C T I V I T I E S

45 58 134 146

Corporate tax paid (1) 0 (3) 0

C A S H F L O W S F R O M O P E R AT I N G A C T I V I T I E S

44 58 131 146

Purchase intangible assets (1) - - (30)

Purchase property, plant and equipment (19) (111) (60) (220)

Sale of property, plant and equipment - 19 4 34

Change of financial investments 1 1 3 1

Sale of fixed asset investments - - 1 1

C A S H F L O W S F R O M I N V E S T I N G A C T I V I T I E S

(16) (91) (52) (214)

S TAT E M E N T O F C A S H F L O W SD K K M I L L I O N Q 3 2 0 1 9 Q 3 2 0 1 8 9 M 2 0 1 9 9 M 2 0 1 8

Proceeds from borrowings 4 32 40 155

Repayments of borrowings (38) (36) (107) (147)

C A S H F L O W S F R O M F I N A N C I N G A C T I V I T I E S

(34) (4) (68) 9

C H A N G E I N C A S H A N D C A S H E Q U I V A L E N T S

(9) (35) 4 (61)

Cash and cash equivalents at opening 78 140 63 171

Exchange adjustment, beginning, cash and cash equivalents

1 (4) 3 (10)

C A S H A N D C A S H E Q U I VA L E N T S 70 101 70 101

Statement of cash flows


G R O S S P R O F I T F U L LY S P L I T B Y N AT U R E :D K K M I L L I O N 9 M 2 0 1 9 9 M 2 0 1 8

G R O S S P R O F I T F U L LY S P L I T B Y N A T U R E :

Gross profit reported 90 72

Staff expenses 48 45

SG&A (15) (19)

Gross profit by nature 123 98

I N C O M E S T A T E M E N T S P L I T B Y F U N C T I O N S ( D E P R E C I A T I O N A N D A M O R T I S A T I O N ) :

Total income 338 322

Cost of goods sold including depreciation and amortisation

(281) (277)

G R O S S P R O F I T 57 45

Other operating items

SG&A, including depreciation and amortisation (32) (34)

E B I T 25 11

D E P R E C I A T I O N A N D A M O R T I S A T I O N

Amortisation of intangible assets - -

Depreciation of tangible assets (37) (28)

T O T A L D E P R E C I A T I O N A N D A M O R T I S A T I O N

(37) (28)

D E P R E C I A T I O N A N D A M O R T I S A T I O N

Cost of goods sold (33) (26)

Sales and administrative costs (4) (2)

T O TA L D E P R E C I AT I O N A N D A M O R T I S AT I O N

(37) (28)

L E A S E L I A B I L I T I E S 3 1 D E C E M B E R 2 0 1 8 A S D I S C L O S E D I N T H E A N N U A L R E P O R T 2 0 1 8

1 6 3

Short-term leases (less than 12 months) (38)

Leases of a low value (15)

Discounting (51)

L E A S E L I A B I L I T I E S R E C O G N I S E D AT 1 J A N U A R Y 2 0 1 9

59

Note 1 - Accounting principlesThis interim financial report is prepared in accordance with IAS 34 ”Interim Financial Reporting” as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.

The accounting policies are unchanged from those applied in the Annual Report for 2018, to which reference is made, except for the effect of implementation of IFRS 16. The effects of transitioning to IFRS 16 are described below.

IMPACT OF NEW ACCOUNTING STANDARDS IN 2019 IFRS 16 IFRS 16 replaces IAS 17 Leases, and sets out the principles for the recognition, measurement, presentation and disclosure of leases and will result in almost all leases being recognised on the balance sheet by lessees, as the distinction between operat-ing and finance leases is removed. Under this new standard, an asset (the right to use the leased item) and a financial liability to make lease payments are recognized for all leases with a term of more than 12 months unless the leased asset is of low value. Accordingly, the Group’s leases were recognised in the balance sheet at 1 January 2019 in the form of right of use assets and lease liabilities.

As regards the income statement, IFRS 16 implementation has resulted in lease expenses being replaced by depreciation of right of use assets and interest on lease liabilities.

The recognition of lease assets and lease liabilities, respectively, resulted in an increase of the Group's total assets and liabilities of DKK 59 million at 1 January 2019. The amount is specified below.

Based on the current lease composition, IFRS 16 implementation will mean that annual leasing expenses of DKK 13 million are replaced by depreciation of DKK 10 million and interest of DKK 5 million in 2019. Implementation will thus increase EBITDA with DKK 13 million and decrease pre-tax profit by DKK 2 million for the full financial year.

The Group’s key figures and financial ratios are also affected by capitalisation of leases under IFRS 16. Invested capital and net interest-bearing debt both increased by DKK 59 million at 1 January 2019, and based on the current composition of leases, implementation is expected to reduce the return on invested capital (ROIC) by about 0.2 of a percentage point, the equity ratio by about 1.1 percentage points and improve the NIBD/Adjusted EBITDA LTM by around 0.1.

Any new leases entered into in 2019 will be recognised as ad-ditions of right of use assets and lease liabilities, respectively, which will enhance the effect on the above-mentioned account-ing items and ratios in 2019.

G E O G R A P H Y R E V E N U E

D K K M I L L I O N 9 M 2 0 1 9 9 M 2 0 1 8

Poland 589 578

Ukraine 310 291

Russia 131 125

Rest of world 91 109

TOTAL 1,121 1,102


Note 2 - Segment information

9 M 2 0 1 9D K K M I L L I O N P O L A N D U K R A I N E R U S S I A O T H E R /

N O T A L L O C AT E DI N T E R C O M P A N Y

E L I M I N AT I O N ST O TA L

Revenue 680 310 131 - - 1,121

Change in fair value of biological assets 86 8 (1) - - 93

Grants and other income 18 2 1 - - 21

T O T A L I N C O M E 784 320 131 - - 1,235

Cost of goods sold (COGS) (613) (225) (82) - - (920)

G R O S S P R O F I T 171 95 49 - - 315

SG&A (50) (26) (11) (15) 27 (75)

E B I T D A 121 69 38 (15) 27 240

Adjusted EBITDA 63 68 42 (15) 27 185

Depreciation and amortisation (59) (30) (11) (8) - (108)

E B I T 62 39 27 (23) 27 132

Net financials (48) - (48)

Exchange rate adjustments 39 - 39

P R O F I T / ( L O S S ) B E F O R E TA X 62 39 27 (32) 27 123

S E G M E N T A S S E T S 1,043 466 234



9 M 2 0 1 8D K K M I L L I O N P O L A N D U K R A I N E R U S S I A O T H E R /



Revenue 687 291 125 - - 1,102

Change in fair value of biological assets 27 25 11 - - 62

Grants and other income 13 1 (0) - - 14

T O T A L I N C O M E 727 316 135 - - 1,178


G R O S S P R O F I T 103 123 72 - - 298

SG&A (40) (23) (10) (36) 21 (88)

E B I T D A 63 100 62 (36) 21 210

Adjusted EBITDA 58 95 52 (36) 21 190

Depreciation and amortisation (57) (20) (11) - - (88)

E B I T 6 80 51 (36) 21 122


Exchange rate adjustments (9) - (9)


S E G M E N T A S S E T S 1,115 360 290



Q 3 2 0 1 9D K K M I L L I O N P O L A N D U K R A I N E R U S S I A O T H E R /



Revenue 228 138 48 - - 414

Change in fair value of biological assets (16) (59) (10) - - (85)

Grants and other income 6 3 - - - 9

T O T A L I N C O M E 218 82 38 - - 338


G R O S S P R O F I T 51 22 17 - - 90

SG&A (18) (8) (4) (6) 9 (27)

E B I T D A 33 48 12 (6) 9 63

Adjusted EBITDA 34 15 18 (6) 9 71

Depreciation and amortisation (19) (11) (4) (3) - (37)

E B I T 14 3 9 (9) 9 26


Exchange rate adjustments 17 - 17




Q 3 2 0 1 8D K K M I L L I O N P O L A N D U K R A I N E R U S S I A O T H E R /



Revenue 221 108 48 - - 377

Change in fair value of biological assets (24) (33) (3) - - (60)

Grants and other income 5 - - - - 5

T O T A L I N C O M E 202 75 45 - - 322


G R O S S P R O F I T 13 30 29 - - 72

SG&A (14) (8) (3) (15) 7 (33)

E B I T D A - 22 26 (15) 7 39

Adjusted EBITDA 4 17 22 (15) 7 35

Depreciation and amortisation (19) (6) (3) - - (28)

E B I T (19) 17 22 (15) 7 11


Exchange rate adjustments (20) - (20)

P R O F I T / ( L O S S ) B E F O R E TA X (19) 17 22 (48) 7 (21)


Note 3 - Biological assets

B I O L O G I C A L A S S E T SD K K M I L L I O N B A S I C H E R D S A L E S T O TA L

2019

Opening balance as of 1 January 109 184 290

Movements:

Purchases 3 - 3

Produced piglets - 485 486

Gain/loss from change in fair value 12 442 455

Sales (28) (801) (829)

Transfer between groups 29 (29) -

Exchange adjustments 10 (14) (3)

C L O S I N G B A L A N C E - VA L U E S A S O F 3 0 S E P T E M B E R 133 268 401

2018

Opening balance as of 1 January 118 196 314

Movements:

Purchases 4 1 5

Produced piglets 3 703 583

Gain/loss from change in fair value (2) 71 69

Sales (22) (729) (751)

Transfer between groups 16 (16) -

Exchange adjustments (1) (5) (6)

C L O S I N G B A L A N C E - V A L U E S A S O F 3 0 S E P T E M B E R 115 221 336

B I O L O G I C A L A S S E T SD K K M I L L I O N 9 M 2 0 1 9 9 M 2 0 1 8

Arable, crop production

Opening balance as of 1 January 66 53

Purchases 158 141

Gain/(loss) from change in fair value (31) 12

Harvest (109) (99)

Exchange adjustments - (1)

C L O S I N G B A L A N C E - VA L U E S A S O F 3 0 S E P T E M B E R 84 83

Numbers of hectares harvested 23,762 20,471

Numbers of hectares seeded as of closing balance 15,227 9,669

The value for produced piglets are calculated as the value of weaners at standard rates. Fair value gains comprise changes as a consequence of biological growth and price changes. Disposals from sales and transfer amounts are calculated using the fair value per unit at the time of the sales or transfer. Transfer between groups covers pigs transferred to own breeding as young females.


Note 4 - Obligor Group

B O N D T E R M SIssuer Goodvalley A/S

Security package: First ranking security over material assets and share pledges

Original Guarantors: Goodvalley A/S, Finansax ApS, Goodvalley Agro SA, Goodvalley Sp. Z o.o. and Goodvalley Ukraine LLC

Status of the bond: Senior secured

Currency: EUR

Initial debt amount: EUR 135 million

Total framework: EUR 270 million

Other facilities: Super senior RCF up to DKK 125 million, governed under an inter-creditor agreement with bond-holders. Basket of DKK 80 million for factoring.

Tenor: 4 years ( May 2021 )

Pricing: 3m EURIBOR + 450bps p.a., quarterly interest payments, EURIBOR floor of 0.0 %

Rating: Unrated

Call options: Non call during the first 24 months, then 50/25/0 % of initial coupon after 24/36/42, month respectively.

Incurrence test: NIBD/EBITDA LTM fixed herd price (net leverage) of < 2.75x for any additional debt raised.

Restricted payments: Dividends or cash contributions to Restricted Subsidiaries are payable up to Net Leverage of < 2.75x

Information covenant: Annual audited statements, quarterly unaudited reports.

General undertakings: Inter alia restrictions on distributions, mergers, demergers, acquisitions, disposals, financial indebtedness, negative pledge, financial support, subsidiary distribution customary for a HY bond.

Change of control: Investor put at 101 %

Equity claw: 35%

Listing of bonds: Nasdaq Copenhagen.

Trustee: Nordic Trustee.

Governing law: Danish law.

The Group has obtained a subordinated loan from the Parent company; Polen Invest A/S, with a balance of DKK 92 million at 30 September 2019 (balance at 30 September 2018: DKK 108 mil-lion). For the 9 months ended 30 September 2019 the Group has repaid DKK 5 million (9M 2018: DKK 5 million) as part of the annual repayment. The Company intends to repay the loan partly during last quarter of 2019, if the financial position of the Company allows it. The loan carries interest, and the interest for 9M 2019 amounts to DKK 4 million (9M 2018: DKK 4 million).

Note 6 - Related parties transactions

The Group’s financial performance is influenced by seasonal fluctuations relating to the arable production, where the Group’s main activities historically are generated in Q3 based on the harvest. Revenue and operating profit before tax thus vary in the various reporting periods for which reason they are not necessarily indicative of future trends. The results of the individual quarters are therefore not reliable sources in terms of pro-jecting the Group’s development and full year earnings.

Note 5 - Seasonality


G E N E R A LGroupGoodvalley A/S, Finansax ApS, Goodvalley Agro SA, Goodvalley Sp. Z O.O., Goodvalley Ukraine LLC and Goodvalley Russia LLC.

P R O D U C T I O NASFAfrican swine fever.

Arable stock, WIPThe arable stock in the fields which is not yet harvested.

Basic herdThe part of the pig herd, which consists of sows, maiden gilts and boars.

Bio assetsBiological assets (mainly pigs and crops).

BioenergyEnergy produced based on biological resources.

BiosecurityLevel of measures taken to prevent infection by contagious diseases.

Certificates on biogasEnergy units used for calculating extra price for sold kWh on top of market price (based on political decisions).

Crop splitThe split between the different types of crops grown in the fields.

Cultivated landLand used for crop production.

EfficiencyMeasurable technical results from the production.

Feed conversion ratioKilo of feed used for one kilo meat produced (live weight).

Live weightWeight of the pig before slaughtering and deboning.

Modified Atmosphere Pack aging (MAP)A packing method where the products are packed in a sealed and protected atmosphere to increase the period from manufacturing to last sales date.

Meat-to-feed ratioPrice of one kilo meat (carcass weight) divided by the price of one kilo feed. Oil seedsCrops that contain oil. Typically rape seed, soya and sunflower. PigletsPigs in farrowing before they are weaned from the sow.

Pig price Price per kilo pig meat in carcass weight.

Pigs sold per sowPigs born per sow in period adjusted for mortality rate in the period and annualized.

Processed productsMeat products which have been cooked, smoked or salted.

Raised without antibiotics (RWA)Pigs that have been raised without exposure to antibiotics from birth till slaughter.

Sales herdThe part of the pig herd that consist of piglets, weaners and slaughter pigs.

Carcass weightWeight of the pig in kilos of meat after slaughtering and deboning.

Slaughter pigsPigs from 30 kilo live weight to slaughter (app. 120 kilo).

WeanersA pig in the period between weaning from the sow and slaughter pig (approximately 6.5-30 kilo).

Glossary

This annual report was released through Nasdaq Copenhagen as company announcement no. 14/2019.

All trademarks such as trade names and other names and designations highlighted in this report are trademarks protected and owned by Goodvalley A/S.

© 2019 Goodvalley A/S

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